The number of housing units for older people across the UK is expected to grow by nearly 10% over the next five years.
In its latest Seniors Housing Development Report, global property consultancy Knight Frank forecasts that there will be 820,000 units by 2025.
The number currently stands at around 750,000 across 25,000 retirement housing schemes.
A substantial increase in schemes with varying levels of onsite care, as well as rental only options, is also to be expected, according to the report.
Knight Frank said the increase in delivery is being fuelled the inflow of new investment and a growth in new operating platforms.
So far this year, £450 million of capital has been invested in the sector and Knight Frank has identified an additional £1.3 billion due to be committed. Investment into the seniors housing sector has been strong in the first half of the year, and this is expected continue, the firm said.
The amount of capital already committed means Knight Frank forecasts total investment volumes for 2021 to exceed those of 2020.
Lauren Harwood, an Associate in the Seniors Housing team at Knight Frank, said: “In response to an ageing demographic, the need for age appropriate housing has grown significantly. Ranging from standard housing through to aged care facilities, the offering of seniors housing in the UK has evolved markedly over the past decade and will continue to do so.”
Housing with care schemes account for 57% of the identified pipeline, with nearly 18,000 units either under construction or with planning submitted or granted. There are just over 13,200 retirement housing units in the development pipeline.
Caption: A planned housing with care development from McCarthy & Stone.